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29 Aug, 2007 07:12

Total to share risk of gas project with Gazprom

The French gas giant Total, which in July signed an agreement with Gazprom to co-operate in developing the Shtokman gas field, will share all the project's risks with the Russian company.

Total will pay about $US 800 MLN and have extensive authority in the project. This will enable it to book up to 300 BLN cubic meters on its reserves.

It is expected that other bidders such as the U.S. company ConocoPhillips and the Norwegian Statoil-Hydro will be offered similar terms, but with less management authority.

The agreement between Gapzrom and Total covers the life of stage one of the development, which lasts up to 25 years.